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The Analyst’s Take: Omnichannel dynamics in natural products industry
With never-ending focus on e-commerce, understand the data behind the retail channels with far larger market share. This is the latest installment of our twice-monthly data discussion from Nutrition Business Journal’s senior analyst.
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With all the buzz around e-commerce, it is easy to envision a doomsday when brick and mortar retail is nonexistent. However, the numbers show that this is not the future in store for the natural and organic products industry.
While internet sales are growing twice as fast as the industry as a whole, at 12.6 percent, the channel only makes up 4 percent of the industry. When you exclude supplements and narrow it down to just the natural, organic and functional food and beverage market, this share shrinks to 2 percent. With growth rates like this, e-commerce is sure to play a larger role in the future of natural products, but at a combined 86 percent market share, brick and mortar still accounts for the bulk of sales.
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